Economic Forum in Davos.
EURUSD forecast today 22/01/2020
The index of sentiment in the business environment in Germany ZEW institute in January reached the level of 26.7 points, the first time since July 2015. Optimism caused by the US and China trade truce, as well as reducing the risks relative to the outlet of Great Britain from the European Union structure. It should be noted that the debt market euphoria is observed: the yield spread on 10-year German / US government bonds this week traded unchanged. Judging from everything, investors are waiting for the outcome of tomorrow's ECB meeting. The US Federal Reserve Thursday the commercial banks $ 90 billion as part of repo operations. If in December the banks lined up for the Fed's money, on the eve of the hype was not observed. This means that the high demand for dollars is not that positive for the euro. In general, it is not necessary to wait, today the strong growth of the European currency,
EURUSD recommendation: flat 1.1050 -1.1120
GBPUSD Forecast Today 01/22/2020
At present, the GBPUSD pair is formed by a positive background for the pound. First, the debt market is observed increase in yields on 10-year UK government bonds relative to their counterparts in the United States and Germany. Second, you can expect an increase in oil prices, which in turn will support the British currency. Speaking at an economic forum in Davos, President Donald Trump said he plans to tax cuts for the middle class in the next budget. This factor has a positive impact on the US economy and will support the oil market.
GBPUSD recommendation: Buy 1.3025 / 1.3000, and take profit 1.3060
USDJPY Forecast Today 22/01/2020
The course of trading USDJPY strong influence continues to have the dynamics of world equity markets. The whole of Asia is now discussing the implications of the new deadly coronavirus. The Chinese New Year will be held this week on Saturday and maybe it will be the most peaceful holiday in the last 15 years. China there is growing pessimism stock markets, but so far it all looks like a technical correction. Why? I would like to draw attention in the first place on the dynamics of US indexes # SP500, which is the eve of the new historical highs. On Tuesday, the US Federal Reserve announced that the repurchase operations will continue until mid-February. Against this background, we can expect growth of the stock market in the US for another week or two, after which investors may begin to take profits on the "Long" before the end of the repo transactions.
USDJPY recommendation: Buy 109.95 / 109.77 and take profit 110.33